Risk Management - Public Bank | PBeBank.com

publicbank • 47
The Financial Action Task Force (“FATF”) on money
laundering was established by the Group of Seven nations
to develop a co-ordinated international response to money
laundering. The members of the FATF include 29 countries
and jurisdictions, from the major financial centre countries
of Europe, North and South America and Asia, as well as
the European Commission and the Gulf Co-Operation
Council. The FATF has developed 40 recommendations that
national governments should take to implement effective
anti-money laundering programmes.
In Malaysia, Bank Negara Malaysia is the competent authority
under the Anti-Money Laundering Act, 2001 (“AMLA”). The
national anti-money laundering programmes set out in the
AMLA extend the functions of existing domestic regulatory,
supervisory and enforcement agencies to include countering
money laundering and terrorist financing.
As a major player in the Malaysian banking and financial
system, the Public Bank Group is at the forefront of the
Government’s and Bank Negara Malaysia’s initiatives and
efforts in the prevention of the use of the banking and
financial system for illicit and laundering activities. Our
Group has in place an established infrastructure geared
towards the prevention and detection of such illicit and
laundering activities. Central to this is an anti-money
laundering policy that is applicable throughout the Group.
The policy is formalised and documented to guide all
employees of the Group and include, inter alia, the following:
– The purpose of the anti-money laundering policy
– Expectations of employees in effecting the anti-money
laundering policy
– The accountability of each level of employees, both in
branches and in Head Office
– Education and staff training in preventing and detecting
money laundering
– Extensive procedures covering areas such as:
• Customer identification
• Account opening procedures
• Record keeping
• Recognition of suspicious transactions
• Reporting of suspicious transactions
ANTI-FRAUD POLICY
Fraud undermines the integrity of a financial institution and
erodes the confidence and trust of customers and the
public in the banking system. Besides the extensive
infrastructure of the Public Bank Group that is established
to prevent and detect fraud and fraudulent activities such
as various systems controls and procedures, internal audit
activities and investments in fraud prevention technology,
the Public Bank Group also have an anti-fraud policy for
its employees. This policy, which is formalised and
documented, sets out the responsibility of employees for
preventing and detecting defalcations, misappropriations
and other irregularities.
The purpose of the anti-fraud policy is:
– To ensure the Group’s business is conducted in
accordance with the law
– To promote an environment of honesty and integrity of
staff
– To enhance awareness of the Group’s stand on
improper, illegal and dishonest acts and the
consequences of such acts
– To create staff awareness of their roles, rights and
responsibilities in relation to improper, illegal and
dishonest acts.
The anti-fraud policy of the Public Bank Group sets out the
specific roles of employees in the prevention and detection
of fraud and in fraud discovery reporting. It also sets out
the steps the Group will take in respect of employees
involved in fraudulent acts.